WHILE THE DEARTH of housing in Dublin is well-known, calls have been made for the capital to have more industrial building.
According to estate agent Savills, the argument is backed by increased trading at Dublin Port.
Total throughput at Dublin Port rose by 2.9% in the first half of the year, leaving 2017 on track to be the strongest year ever for port traffic.
However, the continued growth of the port is threatened by a lack of industrial buildings, Savills says.
John McCartney, Director of Research at Savills Ireland said:
“Supported by the fastest jobs growth in almost a decade personal expenditure on consumer goods is rising by 3.9% per annum. This impact of this is being felt throughout the supply chain – from increased goods movements at Dublin Port right through to increased demand for warehousing, logistics and distribution property.”
Despite the restricted availability of modern units in prime locations, transactions of industrial space in the first half of 2017 were up 29% on the same period last year.
There were three particularly large deals in the quarter – the sale of the former United Drug and Cuisine de France facilities on the Belgard Road, Tallaght and the pre-letting of a new design and build distribution centre at Dublin Airport Logistics Park to Holland & Barrett.
Together, these accounted for 39% of total take-up for the quarter.
Gavin Butler, Director of Industrial at Savills Ireland said:
“Market conditions remain tight with the availability of high quality modern units in prime locations still limited. Reflecting this, and with prime ERVs still 40% off their previous peak, we expect continued rental growth through the remainder of 2017 and 2018.”